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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3954 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 3954

To amend the Geothermal Steam Act of 1970 to promote timely exploration 
    for geothermal resources under geothermal leases, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 14, 2024

 Mr. Heinrich (for himself, Mr. Risch, Mr. Lee, and Ms. Cortez Masto) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
To amend the Geothermal Steam Act of 1970 to promote timely exploration 
    for geothermal resources under geothermal leases, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Geothermal Energy Optimization 
Act''.

SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LAND.

    The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is 
amended by adding at the end the following:

``SEC. 30. GEOTHERMAL OBSERVATION TEST PROJECTS.

    ``(a) Definitions.--In this section:
            ``(1) Categorical exclusion.--The term `categorical 
        exclusion' has the meaning given the term in section 111 of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4336e).
            ``(2) Downhole.--The term `downhole' means a well or 
        borehole dug or drilled into the subsurface of the earth for 
        the purposes of resource confirmation or potential use.
            ``(3) Geothermal observation test project.--The term 
        `geothermal observation test project' means using geothermal 
        technologies to drill a test, monitor, calibration, or other 
        similar type of exploratory drilling process well for 
        geothermal resources on land for which the Secretary concerned 
        has issued a lease under this Act, that--
                    ``(A) is carried out by the leaseholder;
                    ``(B) causes an allowable amount of total 
                disturbance;
                    ``(C) does not include any permanent roads;
                    ``(D) is developed--
                            ``(i) with the deepest cemented casing 
                        string less than 12 inches of downhole size in 
                        diameter;
                            ``(ii) in a manner that does not require 
                        off-road motorized access other than to and 
                        from the well site along an identified off-road 
                        route;
                            ``(iii) with temporary road access, if 
                        needed to enable access to the geothermal 
                        observation test project location, subject to 
                        the requirement that--
                                    ``(I) construction of the temporary 
                                road access is remediated as close as 
                                reasonably practicable to original 
                                condition following completion of the 
                                geothermal observation test project 
                                work; or
                                    ``(II) the temporary road access, 
                                with any additional permanent 
                                improvements, is included as part of 
                                the full review required under the 
                                National Environmental Policy Act of 
                                1969 (42 U.S.C. 4321 et seq.) if the 
                                leaseholder intends to proceed with 
                                geothermal energy use for--
                                            ``(aa) the production of 
                                        electricity;
                                            ``(bb) industrial 
                                        processes;
                                            ``(cc) agricultural 
                                        processes;
                                            ``(dd) brine mineral 
                                        extraction;
                                            ``(ee) direct heating and 
                                        cooling uses; or
                                            ``(ff) any combination of 
                                        items (aa) through (ee); and
                            ``(iv) with the use of rubber-tired digging 
                        or drilling equipment vehicles;
                    ``(E) is completed in less than 120 days--
                            ``(i) including the removal of any surface 
                        infrastructure from the site, unless--
                                    ``(I) the leaseholder conducting 
                                the geothermal observation test project 
                                submits to the Secretary concerned by 
                                not later than 60 days after the date 
                                of first exploration drilling an 
                                extension request for additional time 
                                to complete the observation project, in 
                                which the request provides 
                                justification indicating why granting 
                                an extension is necessary; and
                                    ``(II) the Secretary concerned 
                                grants an extension under subclause 
                                (I), if requested; or
                            ``(ii) not including removal of any surface 
                        infrastructure from the site so long as the 
                        geothermal developer intends to proceed with 
                        resource development directly following the 
                        test phase of the project and into processes 
                        required under the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et seq.); 
                        and
                    ``(F) requires the restoration of the project site 
                as part of any new review required under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) within 3 years of the date of first exploration 
                drilling to approximately the condition that existed at 
                the time the project began, unless the site is 
                subsequently used as part of energy development under 
                the lease.
            ``(4) Geothermal technology.--The term `geothermal 
        technology' means technology designed to extract heat from the 
        subsurface of the earth and that is used to drill--
                    ``(A) hydrothermal project test wells;
                    ``(B) enhanced geothermal system monitoring wells;
                    ``(C) closed loop geothermal system calibration 
                wells; and
                    ``(D) similar types of subsurface disturbances 
                through non-production wells to assess the viability of 
                the heat resources of the earth.
            ``(5) Secretary concerned.--The term `Secretary concerned' 
        means--
                    ``(A) the Secretary of Agriculture, with respect to 
                National Forest System land; and
                    ``(B) the Secretary, with respect to public lands.
            ``(6) Surface infrastructure.--The term `surface 
        infrastructure' means all equipment, materials, facilities, and 
        other items used in the drilling of a geothermal observation 
        test project.
            ``(7) Total disturbance.--
                    ``(A) In general.--The term `total disturbance' 
                means a geothermal observation test project that causes 
                not more than 10 acres of disturbance from--
                            ``(i) soil or vegetation disruption at the 
                        location of each geothermal observation test 
                        project; and
                            ``(ii) soil or vegetation disruption during 
                        access or egress to the geothermal observation 
                        test project site.
                    ``(B) Allowance.--
                            ``(i) Multiple projects.--For instances of 
                        multiple geothermal observation test projects, 
                        the acres of total disturbance allowed shall--
                                    ``(I) be equal to the total number 
                                of geothermal observation test projects 
                                multiplied by 10 acres; and
                                    ``(II) not exceed 100 total acres.
                            ``(ii) Access or egress.--For soil or 
                        vegetation disruption during access or egress 
                        to a geothermal observation test project site, 
                        the acres of total soil or vegetation 
                        disruption allowed shall be equal to the acres 
                        of total disturbance allowed minus the acres of 
                        soil or vegetation disruption caused by the 
                        geothermal observation test project.
    ``(b) Categorical Exclusion.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary concerned shall 
        develop a categorical exclusion for geothermal observation test 
        projects.
            ``(2) Administration.--In developing and administering the 
        categorical exclusion under paragraph (1), the Secretary 
        concerned shall--
                    ``(A) comply with the National Environmental Policy 
                Act of 1969 (42 U.S.C. 4321 et seq.); and
                    ``(B) apply any applicable extraordinary 
                circumstance under section 46.215 of title 43, Code of 
                Federal Regulations (or successor regulations), in 
                determining whether to use the categorical exclusion.
    ``(c) Process.--
            ``(1) Requirement to provide notice.--A leaseholder shall 
        provide notice to the Secretary concerned of the intent of the 
        leaseholder to carry out a geothermal observation test project 
        at least 60 days before the start of drilling under the 
        project.
            ``(2) Review and determination.--Not later than 30 days 
        after receipt of a notice of intent under paragraph (1) that 
        contains sufficient information to evaluate the qualifications 
        of the project for an applicable categorical exclusion, the 
        Secretary concerned shall, with respect to the project 
        described in the notice of intent--
                    ``(A) determine if the project qualifies for a 
                categorical exclusion under subsection (b);
                    ``(B) notify the leaseholder of such determination; 
                and
                    ``(C) administer the categorical exclusion for a 
                geothermal observation test project, subject to the 
                condition that--
                            ``(i) the project meets the specified 
                        criteria for the categorical exclusion; and
                            ``(ii) the Secretary determines that no 
                        extraordinary circumstance exists under which a 
                        normally excluded action or project may have a 
                        significant effect.
            ``(3) Opportunity to remedy.--If the Secretary concerned 
        determines under paragraph (2)(A) that the project does not 
        qualify for a categorical exclusion under subsection (b), the 
        Secretary concerned shall--
                    ``(A) include in such notice clear and detailed 
                findings on any deficiencies in the project that 
                resulted in such determination; and
                    ``(B) allow the leaseholder not less than 60 days 
                after receiving notice under subparagraph (A) to remedy 
                any deficiencies and resubmit the notice of intent 
                under paragraph (1).''.

SEC. 3. REVIEW OF GEOTHERMAL EXPLORATION OR DEVELOPMENT ACTIVITIES.

    Section 390 of the Energy Policy Act of 2005 (42 U.S.C. 15942) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``(30 U.S.C. 181 et seq.) or the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)'' 
                after ``Mineral Leasing Act''; and
                    (B) by striking ``oil or gas'' and inserting ``oil, 
                gas, or geothermal energy resource well'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``, and less 
                than 10 acres for the purposes of geothermal,'' after 
                ``less than 5 acres'';
                    (B) in paragraph (2), by striking ``oil or gas 
                well'' and inserting ``oil, gas, or geothermal resource 
                well'';
                    (C) in paragraph (3), by striking ``oil or gas well 
                within a developed field'' and inserting ``oil, gas, or 
                geothermal energy resource well within a developed 
                field or area'';
                    (D) by redesignating paragraph (5) as paragraph 
                (6); and
                    (E) by inserting after paragraph (4) the following:
            ``(5) For the purposes of geothermal, placement of an 
        electrical transmission line or a distribution line of not more 
        than 20 miles in length in an approved right-of-way corridor, 
        so long as the corridor was approved within 5 years prior to 
        the date of placement of the transmission or distribution 
        line.''.

SEC. 4. LEASING PROCEDURES UNDER THE GEOTHERMAL STEAM ACT.

    Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``every 2 years'' 
                and inserting ``every year''; and
                    (B) by adding at the end the following:
            ``(5) Replacement sales.--If a lease sale under this 
        section for a year is cancelled or delayed, the Secretary shall 
        conduct a replacement sale during the same year.''; and
            (2) in subsection (d), by adding at the end the following:
            ``(3) Deadline.--The Secretary, and the Secretary of 
        Agriculture with respect to National Forest System land, shall 
        issue a decision for a submitted application described in 
        paragraph (1) not later than 60 days after the application is 
        submitted.''.

SEC. 5. GEOTHERMAL OMBUDSMAN AND STRIKE TEAM.

    (a) Definitions.--In this section:
            (1) Director.--The term ``Director'' means the Director of 
        the Bureau of Land Management.
            (2) Geothermal ombudsman.--The term ``Geothermal 
        Ombudsman'' means the Geothermal Ombudsman appointed under 
        subsection (b).
            (3) Geothermal strike team.--The term ``Geothermal Strike 
        Team'' means the Geothermal Strike Team established under 
        subsection (c).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Geothermal Ombudsman.--
            (1) Appointment.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall appoint within the 
        Bureau of Land Management a Geothermal Ombudsman to report 
        directly to the Director.
            (2) Duties.--The Geothermal Ombudsman shall--
                    (A) act as a liaison between the individual field 
                offices of the Bureau of Land Management and the 
                Director;
                    (B) improve--
                            (i) the performance of the permitting 
                        process for geothermal energy resource wells; 
                        and
                            (ii) regional coordination of the field 
                        offices of the Bureau of Land Management;
                    (C) provide dispute resolution services between the 
                individual field offices of the Bureau of Land 
                Management and applicants for drilling geothermal 
                energy resource wells;
                    (D) help Federal, State, and Tribal departments and 
                agencies make the permitting and leasing process for 
                geothermal energy resource wells efficient, orderly, 
                and responsive;
                    (E) develop best practices and templates for the 
                permitting and leasing process for geothermal energy 
                resource wells;
                    (F) coordinate with the Federal Permitting 
                Improvement Steering Council established by section 
                41002 of the FAST Act (42 U.S.C. 4370m-1) and other 
                task forces, as needed, on overlapping duties and 
                responsibilities; and
                    (G) identify potential statutory and regulatory 
                changes based on input from the individual field 
                offices of the Bureau of Land Management, the 
                Geothermal Strike Team, and other stakeholders, as 
                determined by the Secretary.
            (3) Limitation.--
                    (A) Support.--In carrying out the duties of the 
                Geothermal Ombudsman under paragraph (2), the 
                Geothermal Ombudsman shall use personnel, funding, 
                logistics, and other resources of the Bureau of Land 
                Management, to the extent determined by the Director.
                    (B) Effect.--Nothing in this subsection replaces, 
                alters, or diminishes the activities of any ombudsman 
                or similar office of any other agency.
    (c) Geothermal Strike Team.--
            (1) Establishment.--Not later than 60 days after the date 
        of enactment of this Act, the Secretary shall establish within 
        the Bureau of Land Management a task force, to be known as the 
        ``Geothermal Strike Team'', which shall report directly to the 
        Director.
            (2) Duties.--The Geothermal Strike Team shall support the 
        Geothermal Ombudsman--
                    (A) with implementation and continuous improvement 
                of best practices relating to permitting for and 
                leasing of geothermal energy resource wells;
                    (B) with providing direct technical assistance to 
                applicants in field offices of the Bureau of Land 
                Management, as requested; and
                    (C) with coordinating with Federal, State, Tribal, 
                and local governments, and among State agencies, on 
                project review, permitting, and approvals for 
                geothermal energy resource wells.
            (3) Members.--The Geothermal Strike Team shall be composed 
        of members of the Bureau of Land Management selected by the 
        Director, in consultation with the Secretary, who may consult 
        with--
                    (A) institutions of higher education (as defined in 
                section 101(a) of the Higher Education Act of 1965 (20 
                U.S.C. 1001(a)));
                    (B) members from the National Laboratories (as 
                defined in section 2 of the Energy Policy Act of 2005 
                (42 U.S.C. 15801));
                    (C) private entities, as determined by the 
                Director, with expertise in data modeling and analysis; 
                and
                    (D) other experts, as determined by the Director.
            (4) Limitation.--
                    (A) Support.--In carrying out the duties of the 
                Geothermal Strike Team under paragraph (2), the 
                Geothermal Strike Team may use personnel, funding, 
                logistics, and other resources of the Bureau of Land 
                Management, to the extent determined by the Director.
                    (B) Effect.--Nothing in this subsection replaces, 
                alters, or diminishes the activities of any similar 
                office of any Federal agency.
    (d) Reports.--
            (1) Annual report.--The Geothermal Ombudsman and the 
        Geothermal Strike Team shall jointly submit to the Committee on 
        Energy and Natural Resources of the Senate, the Committee on 
        Energy and Commerce of the House of Representatives, and the 
        Director an annual report that describes the activities and 
        evaluates the effectiveness of the Geothermal Ombudsman and 
        Geothermal Strike Team during the preceding 1-year period.
            (2) Additional reports.--In addition to the annual report 
        required under paragraph (1), the Geothermal Ombudsman and 
        Geothermal Strike Team shall submit to the Director any 
        additional reports, as determined by the Director.
            (3) Request.--The Geothermal Ombudsman and the Geothermal 
        Strike Team shall, on request, submit the reports described in 
        paragraphs (1) and (2) to any Member of Congress.
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